Spanish mortgages 65% cheaper since 2007

The mortgage market is currently in a more moderate position. from their highs in 2007, the monthly mortgage payment has increased from 976 euros per month on average to 378 per month in the first half of 2014, record lows. according to a report tecnocasa and Pompeu Fabra University is another indicator is the ratio between moderate monthly fee, and income has gone from receiving more than 60% of salary to 24%, a percentage "ultraconservative"

Evolution of the monthly mortgage payment

The ratio between the monthly mortgage and monthly income of the mortgaged should represent between 30% and 35%, according to experts. before the explosion of the housing bubble this ratio exceeded 60% since 2009 but a sharp drop of nearly 20 percentage points in a semester is observed. tecnocasa as this gives that "banks abruptly began to apply the credit orthodoxy that should apply from the beginning"

Ratio between the monthly mortgage and monthly income of the mortgaged

On the other hand, the percentage of mortgage financing, is down 86%, highs in the second half of 2006, up to 67% of the appraised value of the home in the first half 2014 report tecnocasa and Pompeu Fabra University indicates that "a loan to value below 70% implies an extremely conservative attitude of banks as well as a clear attempt to reduce the risk in lending to these entities granted"

Regarding the terms of mortgages, the study concludes that since 2009 a marked to grant mortgages short trend. thus, for example, in the first half of 2009 the percentage of 40-year mortgages was 45%, while for the first half of 2013 this figure was only 8%, just half that in 2012 for the first half of 2014 this trend is even more pronounced because for that period only 2.2% of mortgages were granted him to 40 years, while 30-year mortgages accounted for 60%

Also noteworthy is the significant increase since the bursting of the mortgage bubble within 30 years. in the first half of 2014 they accounted for almost 37% of the total, while in 2008 barely exceeded 16%

Term evolution of mortgages granted

Can the tenant change the locks on her apartment to rent?

The tenant may change the locks of the apartment for rent

when a tenant to rent a new apartment moves always arises whether to change the lock, because it may happen that the previous tenants kept a set of keys. from api of Catalonia recommend changing to a matter of safety and tranquility. further indicate that the new tenant has every right to do so

This explains that the home is rented for use and enjoyment. in this sense, indicates that you can change the locks without permission and without informing the owner. otherwise, it is deemed appropriate and convenient let them know to maintain a positive relationship even more clear that it is not mandatory

if the lock is changed, another question that arises is whether to give a copy of the new keys. the answer lies in legislation. the Spanish Constitution states in Article 18.2 that the domicile is inviolable

so being rented flat the residence where you live, not the owner, if he decides to enter it without your permission, would be committing an offense of burglary. addition, Article 202 of the penal code states that the individual does not live in the dwelling can not be accessed without explicit consent. therefore, the owner has no right to demand a copy of the key to the new lock

in fact, if you're one of tenant rights, and probably most important, is that the owner can not access the property in any case. just at the time that the landlord is leaving the floor, and with prior permission of the lessee, can enter the house to check the status of it and make the necessary repairs. In addition, the tenant must give the keys to the landlord and the previous lock

Does the landlord can change the locks?

the landlord can not enter the dwelling without permission and for any reason. at the same time, you can not change the lock. "Is a completely illegal action that many homeowners incur when tenants fail to pay the rent receipt or made a blight on housing," stress from api of Catalonia

precisely based on this recurring reality, the law of leases has undergone some changes so that the owner does not see the need to "take the law into their own hands" and expect sufficiently effective legal tools to put solution to this awkward situation

8 reasons to trust your rental property to a realtor

Friday, January 3rd,

Instruct an estate the process of finding a tenant for the apartment you want to rent out can save the owner time and work. For example, the real estate consultant about the price of rent, can make a more comprehensive selection, can arrange the collection of the monthly or manage rental insurance

What does a realtor in the process of renting a home?

- Search the tenant: the amount of people who are informed that this apartment is for rent is much higher than that see the ad in the street, and rent much earlier. the realtor has photos of the floor and makes a screen and the prospective tenant. if an individual is interested in seeing the floor are the property of those who are responsible to teach and not have to be outstanding to adjust schedule

- Select the tenant: query any database delinquent tenants requests and collects all the necessary to ensure that documentation is a solvent tenant. So asks a bank guarantee, payroll for the last three months, and checks that all this documentation is real

- Advisor on the rental price: Agencies know what you can ask for the rent of your apartment as well know the market

- Advisor on the rental agreement: although it seems a simple thing to do things right, a poorly written contract or not following the law can be a problem for the owner. Agencies are to date with the latest updates such as those contained in Measures Act Promoting Flexibility and Market Rental Housing which was adopted in June 2013

- Make the collection of the monthly payment if it is not done by bank transfer: this is long overdue in homes rented by students or by several people, each gets its share and then pay the full monthly payment on real estate

- Manages rental insurance to avoid and resolve situations of default

- Responsible of Payment of water bills, electricity, gas ... This option is very convenient if you want to terminate supplies to give as high supply companies charge

- Dissemination of flat for rent in media, internet and social networks the floor

Of course the downside is that this has a cost. In some communities the realtor only charges the landlord one month's fee plus VAT but can also charge in half each half to the landlord and the tenant half. other will charge the full monthly fee plus 21% VAT each, landlord and tenant

How to sell Spanish real estate fast

Believe it or not you can sell your Spanish property in a matter of days. The key is to set the right price.

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A couple years ago a property selling e.g. in Mallorca for 500K was sold within 2 months, Nowadays the same property will not even sell at 450K, but might stand a change if its priced between 350-400 K.
Many investors and 2nd home owners who bought Spanish property and have to sell would like to close their eyes and wait until their nightmare is over. They are faced with the decision of having to sell their property at a loss.
Most of these investors would rather wait a little longer and see what happens. They might think about the recuperation of the US housing market and they desperately are focusing on the positive economic figures in Europe.
What these investors are disregarding is simple fact of Who in their right minds would want to buy a property which has been in the market since a long time and for the same selling price?. The chances of finding a buyer ar very very slim.

So here a couple tips when selling Spanish property.:

1) Sell at the right price
Try to be realistic when selling Spanish property. If your property is not selling its because of the price.
Lower the price of your property and you will be amased to see what the effects are.
2) Be sharp
When your property comes into the market invest heavly in promoting it. The fisrt couple of weeks are essential when trying to sell the property. The longer your property is in the market the less chances it has.
3) Compare prices
Check what similar properties are selling for and price your property in a competitive way.
4) Seek professional assistance
An estate agent will probably help you filtering potential buyers and curios not wanting to buy buyers.
5) Be calm
When showing a property to a potential buyer do not give him the sensation you desperately want to sell. Do not overly exagerate the positive points of the property.
6) Do not disregard offers
If someone makes you a valid offer, one that is within reason, do not disregard it or you might regret it later on.
7) Using social media and other property portals
Make sure the property is priced the same in all the media and with your estate agent/s.
Having different prices is suspicions and scares buyers off.
8) Using an attractive ad
Properties that do not have pictures do not sell. Aln make so provide good descriptions and if you can make a video presentation.
9) You sold your house, or maybe not.
Let say you found a buyer. Make sure is has the credit to buy it. Make sure he can get a mortgage.
Make sure that when a deposit is paid to in case the sell is canceled. Do not take the for sale sign off until the sell is completed.

Question: Buy property in Spain get Citizenship ?

Hello,
I read an article that if I buy a home that costs about $200,000 U.S.D. I'll get automatic Spanish Permanent-Residency which I imagine will lead to Spanish citizenship after a few years even though I'm not European.
Is that true ??
$200,000 U.S.D. is a lot of money for one property, is it possible to buy a few properties that add-up to that amount and receive the same benefit ?


I don't know the amount in US dollars but it was 200.000euros and has now been reduced to 160.000 euros whatever that equates to in USD.
This has come into being because the Spanish governmentis desparate for money from abroad and Eu citizens have stopped flooding into Spain with the result that there are thousands of properties standing empty.
There will probably be some other conditions apart from purchasing property. You may find you need to prove that you have an income from outside Spain.
For example, Cyprus gives non Eu citizens residency if they buy a property for 300.000euros, can prove they have an income of at least 30.000euros per year and 5.000 for each dependant. They also have to deposit 30.000 in Cyprus bank which they must leave there for at least 3 years. All of this money must be proven to come from outside Cyprus.
I would imagine there will be similar conditions to getting residency in Spain if you are a non EU citizen although the amounts may be smaller.

Understanding the Rental Terms

The rental contract should include:


*

Date and place where contract is created and signed
*

Details of the landlord
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Details of the tenant
*

Details of property being rented, including location, size and layout
*

Length of the rental term
*

Rent payable to landlord by tenant
*

Signature of both landlord and tenant



The rental term may be any length up to five years. When the agreed term is shorter, the tenant can extend the contract to last five years if they wish to do so. If they choose not to extend the term they must give at least one month's notice that they do wish to terminate the contract as agreed. After five years, the rental agreement can be further extended for terms of up to three years.

The tenant is required to pay rent to the landlord in exchange for living at the property. The rent can be negotiated by both parties, and will usually be paid in the last or the first week of the month. The landlord should send the tenant a receipt to show that the rent has been paid, in order to avoid any future disagreements. Once the initial rental term is over, the rent will typically be renegotiated to take increases in inflation into account. Some landlords will increase rent annually, after the initial rental term, in line with the Consumer Price Index (CPI).

Repairs on the property are the landlord's responsibility, and will typically be done once the rental term has come to an end. Should urgent repairs be necessary, the landlord must inform the tenant in advance that there will be building work; if this disruption lasts longer than twenty days the landlord must reduce the rent that month. The tenant can make small repairs, especially if these are needed to fix damage caused by general wear and tear. Should the tenant wish to make large-scale alterations to the property, they will need the landlord's consent.

Renting Property in Spain

In Spain it is more common to buy a home than to rent one, and for this reason there are relatively few properties available for rent in Spain compared to other European countries. The limited housing market can make it difficult to find a rental property that meets your expectations. Finding a property is yet more problematic for young people, the over sixty-fives and immigrants, many of whom tend to have only a limited budget for accommodation. In addition, the demand for properties in Spain has recently increased: house prices and rental costs have doubled, particularly in popular urban areas. It is difficult to find official government information on the property market, and there are few reliable details on the number of properties available and the current demand.

Spain currently welcomes thousands of immigrants each year. This creates a great demand for rental properties and in turn increases rental prices. It is becoming more and more common to stay in 'bedroom cities': small towns located near large cities where more properties are available and rent is more affordable.

Over the last decade, the Spanish property market has undergone several changes. It is becoming more and more common for people to purchase property, rather than to rent. In recent years there has been a boom in the real estate sector; as the demand for homes increases, more and more homes are constructed as a result. This has also led to a significant increase in house prices.

The housing boom has created many jobs and contributed to considerable economic growth in Spain. However, it has also resulted in heavy reliance on the construction market, and increased debt as more and more families take out mortgages. These facts threaten the likelihood that the housing surge will contribute to Spain's long-term economic stability. As a result, the government has begun to implement certain measures to make this situation sustainable, and avoid a repetition of the mortgage crisis in the United States and United Kingdom.

In some ways, a housing crisis is already expected; increasing house prices have resulted in a rise in the number of people falling into arrears on their mortgage and rental payments. Banks will no longer grant loans or mortgages to people who are at risk of failing to make repayments; as a result demand for housing has fallen, and house prices have fallen accordingly for the first time in years.

In Spain, rental prices vary according to the location of the property. There is a huge demand for property in Madrid and Barcelona and thus prices here are high. These are big cities offering many job opportunities, and lots of people choose to live here to find work, although rental costs will constitute a large part of their expenses. Many other people choose to move to villages or small towns near to big cities which offer more affordable properties. These are known as 'ciudades dormitorio': literally, 'bedroom cities'.

To tackle the problem of price increases, some provinces have enacted laws that force the owner to rent out their property if it has not been occupied for more than two years. The government can request that the property be put on the market, or demand that the owner rent it out if there is a risk that the property will fall into ruin.

Also you can check-out our large porttafolio in Rental Properties around Malaga y La Axarquia